Computer giant Intel is planning further venture capital investments in Irish technology companies, provided the State continues to improve its broadband capabilities.

Mr Dave Hazell, Intel director for UK, Ireland and the Nordic region, says such investment in Ireland over the next five years could grow by a factor of 10, bringing it to around $500 million (€484.7 million).

"Intel increasingly sees Ireland as an area where technology is evolving. Seventy-five per cent of Ireland's IT output is exported, which means investors are looking at a much greater market," Mr Hazell said.

Intel's corporate investment group, based in Swindon, will pursue an aggressive strategy in the next year, particularly in communications.

The company, which employs 4,300 people at its manufacturing facility in Leixlip, Co Kildare, has a global technology investment fund valued at $4.8 billion. It was recently ranked three in IT magazine Red Herring's list of 25 top performing venture firms.

Intel has already made four successful investments in Irish companies: Baltimore Technologies, Iona Technologies, Enba and International Financial Services.

Intel began pursuing investments in European technology companies more than a year ago to stimulate demand for PC products, which will increase the overall size of its market.

Now it is seeking to invest in firms in the wireless communications sector, as demand for non-PC devices is set to grow dramatically. Europe has led the development of wireless and mobile communications technologies, and Intel recognises it must invest in the sector if it wants to take a significant stake in the post-PC chip market.

Intel is an investor in Formus Communications, which recently won a licence to offer broadband wireless access here. It is viewed as a serious international player in the area.

Mr Hazell was in Dublin to address business leaders on ecommerce business opportunities. He said Intel wanted to promote its message from a sales perspective, because Ireland's rate of growth and increase in PC usage has made it attractive market for Intel.

Mr Hazell added the current skills shortage was a growing concern for Intel in Leixlip, where manufacturing technicians are in short supply.

Intel is working with government and education bodies to increase courses on offer to school leavers. But the company may also need to look further afield to fill its requirement for 700 to 800 additional employees over the next 15 months.